All Forum Posts by: Mycah Healey

Sounds like you haven't purchased? I'd think in Vegas you could purchase something that has a pool that would cashflow. I have a property there and the regulations are a bit of a disaster depending on where exactly you go so just be careful on that especially if you are not owner operated. TX is big... and hot. Still thinking pool but market likely matters.

@Taylor Stow there were 6 or 7 points that the judge said were unconstitutional- it noted that the ordinance was vague and/or overbroad and enjoined/requires the county to stop enforcing the excessive fines/ penalties, can't  require applicants to sign under penalty of perjury, inspections with little or no notice, limits on gatherings etc. The fines are huge win as they were to be issued anywhere from 1k-10k/ day and they'd would go subpoena records from Airbnb and make it retroactive.. Here is a local story for more detail. DM me if you want me to email the actual order.  Next step is to appeal this and take it to Nevada Supreme Court

https://news3lv.com/news/local...

@Eric Fernwood Thank you for the information! I will review and reach out if I have questions. 

All excellent points. Agree on many other lucrative markets and have aging family there driving the interest. Our property has multiple exits (2 units) and while our preference is STR, it works for both Mid and LTR. I find this particular ordinance and execution of enforcement absolutely fascinating and a bit frustrating. That said, we've chosen invest with lifestyle in mind and understood the risks. It is also interesting to see a case play out that could have significant impacts on the industry (At least domestically?) @Kurt Martig this ordinance has similar restrictions where you have to be 2500 feet away from casinos and 660 ft away from another STR. The crazy part is the random selection for the application where if your neighbor gets selected under false claims (for the purpose of an example) and you apply with an honest complete application, they have no way to come back and consider your application in their current process. 

For those of you that are in markets with less than favorable ordinances for short term rentals, The Greater Las Vegas Short Term Rental Association is an organization  that is leading the charge in a lawsuit against Clark County (where the Strip is) with regard to regulations that rolled out last summer. The district court has granted a preliminary injunction and this will likely go to the Nevada Supreme Court. Time will tell on the outcome but all signs are positive for more fair regulation to be mandated - this could be a case that sets precedence and something that those in restrictive markets should keep an eye on. If you happen to be in Nevada, Clark County or simply want to help protect property rights, please consider getting involved. Anyone else have experience in tough but lucrative markets? Happy Thursday all!

@Account Closeds expertise. I believe he supported what I understood the definition of 'tax payer' to be albeit much more eloquently! I don't follow the comment on the 'deed' being secondary, so perhaps that part is overkill and not necessary? My husband and I just put both of us on all the things for continuity for fear of screwing it up...I understand the implication for financing but this was our lazy approach in trying to tackle 3 exchanges at once. As long as you aren't closed on your relinquished property, you should have time to sort everything out. 

Couple of quick questions come to mind: Do your sale and purchase contracts disclose that you are doing a 1031?  Have you have ID'd the replacement properties/ shared the purchase agreement/ Title closer info with the QI?

HI @Account Closed! Congrats on the exchange!  My husband and I did 3 this summer and ran into this. Odd that your CPA doesn't know but maybe if you run my understanding by them, a new real estate specific CPA and your intermediary you can build some confidence?  It is my understanding that the same tax payer who defers the tax will need to be the seller of the relinquished property and the purchaser of the replacement property.  So if you file jointly, you both need to be on title for the properties involved. The title company should be able to whip up a deed to add you to title to record when you sell the relinquished property - they just need to record the deeds in the proper order...and as I write this, I'm wondering if you have already sold the property in OR? Insert standard disclaimers about contact a professional :)

@Landon Miller this is a good problem to have!  Not sure about the timing on if you sold... It is my understanding you would need to be in the property for 2 of 5 years to be tax exempt which it sounds like you could be.  Other things to consider: what is your current debt/ interest rate/ appreciation... is it possible to refi and secure better cash flow? If you decide to sell, I wouldn't make any decisions about repairs until you are closer to that time to evaluate the current condition of the market and the house to stress test what is needed.  I have access to a tool that can help you prioritize the repairs/ improvements that you could make and what the projected return would be if you do it.  Let me know if of interest and I can share it with you.  Finally, if you don't have the cash or don't want to spend out of pocket, there are programs that will fund the repairs before you sell to help you maximize your exit.  Personally, I might do a hybrid: refi to better my debt position (assuming that makes sense), rent it out for 3 years then sell to take advantage of the continued appreciation and capital gains tax exemption.  I'm making a lot of assumptions about the details but directionally, that is how I think about it and what I have done 4 times in the last 6 years... don't sell a lot though :) Would be happy to talk more or share that tool if helpful. Good luck!

@Steve Morris thank you for the suggestion.  Besides 12-15% return on 400k our goals are income oriented in the near term and we take the appreciation as icing on the cake. Im in real estate full time so not afraid of it being an active investment that requires work on the frontend as opposed to passive.  Let me know if there are specific questions about our goals that you think would be helpful to understand.  I  guess part of the purpose behind the post is we are curious what other investors would do if they had the money to invest.

@Brandon Sturgill, thank you!  We are soooooo tempted to stay in Columbus.  We are trying to be honest about what we are good at and managing these is not at the top of the list.  It's unfortunate because they pencil better than a lot of our other properties.  Thank you for your feedback and vote for Multifam!

@Tina Tsysh thanks for weighing in! We are not strangers to value add and major rehab so that would be ideal for anything we consider.  Definitely like the idea about the course to improve our analysis skills and open to the investment.

If Im honest, Im concerned about Multifam with a push for space in response to COVID.  Definitely appreciate the words of caution @John Teachout. I think we've modeled the expenses for selling with/without my commission in consideration pending what property we are talking about.  Its actually some of the discussion with regard to the new administrations plans for 1031 that is driving us to consider this.  The property in Denver has really low return on equity and the appreciation has out paced the rent growth. So the logic is that we should be able to get more than $300/month if we deploy that $200k elsewhere?

@Jeff Fox agreed!  I honestly don't want to compete with everyone going into multifam unless its through unconventional means (hotel conversion?).  Luckily the Denver property will be sold to our current tenants and we haven't yet listed the properties in Columbus.  It seems like we have a great opportunity and we don't want to self sabotage! Luckily our market is forgiving!
Thanks all!

Hi BP Community! My husband and I live in Denver, invest here and Columbus OH. We are looking to do our first 1031 exchange for 3 properties and should have about $400k in a single exchange or about $200k in each in 2. We are selling 2 duplexes in Southern Orchards area in Columbus, OH and 1 SFH in the Highlands neighborhood in Denver CO. While the properties in Columbus have appreciated and cash flow nicely, we are loving the appreciation that we are seeing in our local market and think we can maximize our resources better locally. My question for you is this: what would you trade into? How would you go about figuring out the next best thing? We know single family well and have wanted to scale up either in volume of home or into a mid size multifam. There are a few reasons, I'm less than optimistic in Multifamily but it could be that it is just uncharted territory. We are looking to shooting for 12-15% return and are curious if there are other product types people are bullish on that we should consider? We would love other like-minded investor's thoughts on how they would approach the opportunity!